Bank liquidity creation following regulatory interventions and capital support Academic Article

abstract

• 2016 Elsevier Inc. We study the effects of regulatory interventions and capital support (bailouts) on banks' liquidity creation. We rely on instrumental variables to deal with possible endogeneity concerns. Our key findings, which are based on a unique supervisory German dataset, are that regulatory interventions robustly trigger decreases in liquidity creation, while capital support does not affect liquidity creation. Additional results include the effects of these actions on different components of liquidity creation, lending, and risk taking. Our findings provide new and important insights into the debates about the design of regulatory interventions and bailouts.

authors

• Bouwman, Christa

published proceedings

• Journal of Financial Intermediation

altmetric score

• 3

author list (cited authors)

• Berger, A. N., Bouwman, C., Kick, T., & Schaeck, K.

citation count

• 180

complete list of authors

• Berger, Allen N||Bouwman, Christa HS||Kick, Thomas||Schaeck, Klaus

publication date

• January 2016

publisher

• Elsevier  Publisher

published in

• Journal of Financial Intermediation  Journal

keywords

• Bailouts
• Bank Distress
• Capital Support
• Liquidity Creation
• Regulatory Interventions

Digital Object Identifier (DOI)

• 10.1016/j.jfi.2016.01.001

start page

• 115

end page

• 141

volume

• 26

URL

• http%3A%2F%2Fdx.doi.org%2F10.1016%2Fj.jfi.2016.01.001

user-defined tag

• 8 Decent Work and Economic Growth